Private over-indebtedness, a concept that has become too common?

Abstract

Being indebted is a normal state. The difficulty arises, however, when the concept of indebtedness exceeds the chances and / or limits of the possibility of repayment. Over-indebtedness is identified when household incomes become insufficient to meet long-term commitments and payment obligations. Of course, the debtor becomes insolvent, despite the decline in living standards. The increased vulnerability to risk factors of monetary-financial shocks is associated with over-indebtedness and is the basis of the ideas used in our historical-economic research.